Quote:
Originally Posted by sammyg2
'scuse my ignorance, but how does one go about shorting CLOs 
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I wish I had been a bit more astute back in 06-08...you might say I was asleep as in not paying attention.
I did know that the RE bubble was going to deflate..having been around that block several times in CA. I was talking to my older friend Jack about it...as in how high can it go befoe? I did warn Motion to get the fk out... which he did..where he unload some homes..
I never imagined RE would literally crash and burn to the extent that it did though..
I was watching Equities where Mother was the watchdog I relied upon. She did mention in late 07 that the banks were leveraged 30 times..I didn't catch it..and put 2 and 2 together..
I knew immediately when GW came on TV it was game over...I became WOKE..
Out of all the banks Wells Fargo which is CA based and had seen RE crashes before got burned the least. Chase with Dimon was reducing exposure to the Sub prime RE market and faired better than their competitors..
The rest believed their own hype. Where they RECKLESSLY ASSUMED TO MUCH RISK. As the downside to that risk was an abstraction since they had never had the experience of the real consequences of assuming too much risk...it was a matter of well it can happen but it probably won't.
The problem since has been since the FED and Treasury has saved them from themselves is the belief that the Crisis was just another Garden Variety crash.. That if we just apply the right fix we will be back to biz as usual...
I have been warning since 08 that the Crisis Crash was and is a GAME CHANGER>..that it was just a matter of time before the storm would be revisited.
The Squirrels are still at it...Corporation are leveraging themselves up to the hilt with cheap money..essentially taking out all the equity from the corporation...Apple is one of them..While the FED is providing a vertible sea of liquidity that drives their stock price ever upwards.
The whole Global Economy is nothing but a shell...there is nothing left..all the value has been consumed. That is why I say it doesn't matter anymore...rich man poor man you all have been robbed...
Where the FED is the one left in the unenviable position of having to put their fingers in the dike. The dummies do not realize that they have put the gun to their heads and have pulled the trigger..the bullet is now traveling down the barrel.